WASHINGTON – Joint Economic Committee (JEC) Ranking Member Carolyn Maloney (D-N.Y.) said Wednesday that Social Security Disability Insurance (SSDI) plays a vital role in the economic security of nearly 9 million people and she dispelled misconceptions that the program is riddled with fraud and disincentives to work.
“The Social Security Disability Insurance program is a critical part of our safety net that protects each of us in the event of a life-changing injury or illness that prevents us from working and earning a living,” Maloney said. “We all have an interest in making this program as strong and successful as possible.
Maloney’s remarks came at a JEC hearing that examined SSDI, a program that provides modest, earned benefits to Americans who have worked at least one-quarter of their adult lives, at least five of the last 10 years and can no longer earn a living due to one or more serious medical impairments. As of September 2015, about 10.8 million people benefited from SSDI, including disabled workers as well as spouses and children of disabled workers. The average monthly benefit was about $1,165, just over the poverty line, and the typical beneficiary worked for 22 years before becoming disabled.
“None of us knows if we will need disability benefits sometime in our lives,” Maloney said. “But a young person starting his or her career today has about a one-in-four chance of needing SSDI before reaching retirement.
“We must recognize that most SSDI recipients simply cannot work – they struggle with debilitating injuries and illnesses. They have earned these benefits.”
Maloney said that SSDI fraud is rare – overpayments in FY 2014 were less than 1.5 percent. The recent federal budget agreement also will strengthen controls against fraud and abuse. The Congresswoman noted that most of the growth in the SSDI program over the past several decades is due to baby boomers entering their high-disability years and the steady increase of women in the workforce who in turn qualify for these benefits. This growth has since levelled off, and in fact SSDI caseloads declined over the past year.
Nor is it easy to be approved for SSDI, Maloney said. About two-thirds of disability insurance applications are denied, and the number of applicants approved for benefits is near historic lows.
Furthermore, Maloney noted that SSDI beneficiaries are allowed to work, earning up to $1,090 per month with no impact on their benefits.
“In other words,” she said, “beneficiaries receiving disability have a very high incentive to work.”
Read Congresswoman Maloney’s full statement here.
See a set of SSDI charts here.
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